HomeMy WebLinkAbout1994-167-10/04/1994-AFFORDABLE HOUSING DEVELOPMENT IMPACT FEES REBATE RESOLUTION 94-167
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING ADMINISTRATIVE REGULATIONS FOR THE REBATE OF
IMPACT FEES FOR AFFORDABLE HOUSING
WHEREAS, on October 4, 1994, the City Council passed on second reading
Ordinance No. 145, 1994, amending Chapter 5 of the City Code so as to permit the
rebate of certain impact fees for affordable housing units; and
WHEREAS, Section 5-356 of the City Code, as approved by Ordinance No. 145,
1994, provides that the administrative regulations developed by the City Manager
for the rebate of said impact fees shall be approved by the City Council by
resolution; and
WHEREAS, the City Manager and other members of City staff, in consultation
with the Affordable Housing Board, have developed such proposed regulations; and
WHEREAS, the City Manager and the Affordable Housing Board have recommended
that the said regulations be adopted by the City Council ; and
WHEREAS, the City Council has reviewed the proposed regulations and wish
to adopt the same.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS
as follows:
Section 1 . That the "City of Fort Collins Development Impact Fee Rebate
Program Regulations for Affordable Housing," attached hereto as Exhibit "A" and
incorporated herein by this reference, are hereby adopted by the City Council to
be used by City staff in reviewing and approving the rebate of certain impact
fees for affordable housing units as defined in Section 5-357 of the City Code.
Section 2. That this Resolution shall take effect on October 14, 1994.
Passed and adopted at a regular meeting of the Council of the Cit of Fort
Collins held this 4th day of October, A.D. 1994.
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ATTEST:
2va City Clerk
EXHIBIT A
CITY OF FORT COLLINS
DEVELOPMENT IMPACT FEE REBATE PROGRAM REGULATIONS
FOR AFFORDABLE HOUSING
2. BACKGROUND AND PURPOSE
This document outlines the provisions and processes by which
applicants can request a partial rebate of development impact
fees paid for units which are: (1) Rent restricted at levels
60% or less of the Area Median Income for Fort Collins (based
on data provided by HUD for Larimer County) and occupied by
residents who earn 80% or less of the Area Median Income for
Fort Collins; or (2) Owner occupied by residents who earn 80%
or less of the Area Median Income for Fort Collins who are
paying no more than 38% of their monthly gross income for
Principal, Interest, Taxes, and Insurance (PITI) . The
Development Impact Fee Rebate Program exists for the purpose
of stimulating the private, public, and non-profit development
of affordable housing.
II. ISSUING ENTITY
The Fort Collins Planning Department administers the
Development Impact Fee Rebate Program. All applications must
be submitted to the Fort Collins Planning Department.
III. ELIGIBILITY
A. Eligible Applicants
Nonprofit organizations, private developers, individuals,
the Fort Collins Housing Authority, neighborhood based
groups, and public/private partnerships are eligible to
receive a Development Impact Fee Rebate under this
program.
B. Eligible Projects
Eligible projects are defined as "the total number of
units in a P.U.D. , subdivision or minor subdivision. "
However, Development Impact Fee Rebates are applicable
only to the portions of the "project" that are determined
by the Planning Department to be affordable as defined in
Sections IV(D) and IV(E) of this document. Rebates are
only applicable to "newly" constructed affordable units
which were issued building permits on or after August 17,
1994. (The adoption of Resolution 94-134)
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C. Eligible Fees
Fees eligible for rebate are limited to the following:
Water Plant Investment Fee
Water Rights Acquisition Fee
Sewer Plant Investment Fee
Storm Drainage Fee
Street Oversizing Fee
Parkland Fee
IV. PROGRAM REQUIREMENTS
A. All units must be located within the City limits of Fort
Collins unless otherwise authorized by the City Council.
B. The maximum rebate per unit shall not exceed the amount
paid for eligible fees (see Section III (C) ) for the unit.
C. Where eligible fees (see Section III(C) )` were paid using
Federal or State program funds administered by the City
of Fort Collins, any rebate(s) issued by the City of Fort
Collins will be returned to the funding source unless
otherwise authorized by the funding source.
D. For rental projects:
(1) Rent restriction. For a unit to qualify as a low-
income unit, gross rent per month may not exceed
the following rent schedule. Said rent schedule is
determined by the Director of Planning upon receipt
of the annual establishment by HUD of the Area
Median Income for Fort Collins.
GROSS RENTS BY PERCENTAGE OF AREA MEDIAN INCOME
30% 35% 40% 45% 50% 55% 60%
0 BR Unit $233 $271 $310 $348 $386 $425 $464
1 BR Unit 265 310 354 398 443 486 530
2 BR Unit 299 348 399 448 498 548 596
3 BR Unit 358 418 496 538 596 656 715
4 BR Unit 384 449 514 576 641 705 769
5 BR Unit 438 510 584 656 729 803 875
Maximum Rebate
Per Unit $4200 $3600 $3000 $2400 $1800 $1200 $600
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(2) Gross rent is the sum of 1) all payment by the
tenant to the owner for rent, water, sewer,
garbage, gas and/or electric, and 2) federal,
state, and local rental assistance payments (such
as Section 8 payments) made on behalf of the
tenant. If the tenant pays utilities directly, the
maximum rent that can be paid to the landlord is
reduced by a utility allowance determined by the
Fort Collins Housing Authority in accordance with
rules under Section 8 of the U.S. Housing Act of
1937 ("Section 811) .
(3) The minimum low-income use compliance period for
rental projects is ten (10) years from the date the
rebate is issued. The City will require the
execution of deed restrictions on the unit or
project to assure the low-income benefit of the
rebate program. If the gross rent on any of the
"affordable" units exceeds the rent schedule in
effect, the following repayment schedule will
apply:
Year % Of Total Rebate Repaid
0-5 100%
6 80%
7 60%
8 40%
9 20%
10 0%
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E. For homeownership projects:
(1) All units designated as "affordable" must become
the principal residence of an owner whose family
qualifies as a low-income family (80% or less of
Area Median Income) at the time of purchase. The
following schedule is based upon the Area Median
Income of $44, 200:
PERCENTAGE OF AREA MEDIAN INCOME
Household
Size 40% 50% 60% 70 80%
1 Person $12,400 $15, 450 $18, 550 $21, 650 $24, 750
2 People 14, 150 17,700 21,200 24, 750 28, 300
3 People 15,950 19,900 23, 850 27, 850 31, 800
4 People 17,700 22, 100 26,500 30, 950 35, 350
5 People 19,850 23,850 28 , 600 33, 450 38, 200
6 People 20,550 25, 650 30,750 35, 900 41, 000
7 People 21,950 27,400 32, 850 38,400 43 , 850
8 People 23 ,350 29 , 150 35 , 000 40, 850 46 , 650
Maximum Rebate
Per Unit $3000 $2400 $1800 $1200 $600
(2) Total monthly payments for Principal, Interest,
Taxes, and Insurance (PITI) shall not exceed 38% of
the gross monthly household income.
(3) The minimum low-income use compliance period for
homeownership projects is five (5) years from the
date the rebate is issued. All units designated as
"affordable" must become the principal residence of
an owner whose family qualifies as a low-income
family (80% or less of Area Median Income) at the
time of purchase and must remain the principal
residence for the duration of the five (5) year
low-income use compliance period. The City will
require the execution of deed restrictions on the
unit or project to assure the low-income benefit of
the rebate program. If the projector unit is sold
within the five (5) year compliance period, the
following repayment schedule will apply:
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Year Of Total Rebate Repaid
0 100%
1 80%
2 60%
3 40%
4 20%
5 0%
F. The minimum square footage allowed for the number of
bedrooms per unit are as follows:
0 BR Unit 350 S.F.
1 BR Unit 500 S.F.
2 BR Unit 650 S.F.
3 BR Unit 800 S.F.
4 BR Unit 950 S.F.
5 BR Unit 1100 S.F.
V. APPLICATION REQUIREMENTS
A. For rental projects. The applicant shall submit to the
Planning Department:
(1) An application form providing the following
information:
a. Name of applicant;
b. Address of applicant;
C. Project location by legal description and
surveyed site plan;
d. Total number of units in project;
e. Total number of "affordable" units in project
(i.e. number of units for which rebate is
requested) ;
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(2) A list of each rent restricted unit by bedroom size
and "gross rent" charged.
(3) A signed affidavit which commits the number of
units for which Development Impact Fee Rebate is
requested to the low-income occupancy requirements
outlined in Section IV(D) .
(4) A Certificate of Occupancy for each unit or
building in the project.
(5) Verification that the minimum square footage
requirement for each unit is met (A copy of the
building permit) .
(6) Description of all sources and uses of all funds.
B. For homeownership projects. The applicant shall submit
to the Planning Department:
(1) An application form providing the following
information:
a. Name of applicant;
b. Address of applicant;
C. Project location by legal description and
surveyed site plan;
d. Total number of units in project;
e. Total number of "affordable" units in project
(i.e. number of units for which rebate is
requested) ;
(2) A Certificate of Occupancy for each unit.
(3) Verification that the minimum square footage
requirement for each unit is met (A copy of the
building permit) .
(4) Description of all sources and uses of all funds.
(5) Income certification of the purchaser (must be 80%
or less or Area Median Income) .
(6) An acquisition or purchase contract of the income
qualified purchaser.
(7) Verification that the monthly Principal, Interest,
Taxes, and Insurance (PITI) payment of the
purchaser does not exceed 38% of gross monthly
income.
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(8) An affidavit signed by the initial purchaser that
the unit will remain their principal residence
during the 5 year low income compliance period.
NOTE: Items B(5) , B (6) , and B(7) are submitted as
confidential financial data and, to the extent
permitted by law, will not be a public record.
VI. ISSUANCE OF REBATE
An issuance of rebate(s) will occur only after the review and
approval of all submission requirements outlined in Section V.
Rebates are a function of 1) Meeting the qualifications
described herein; and 2) The total amount of funds available
minus rebates paid to previously approved projects.
Submission of application requirements does not guarantee
rebate of development impact fees. In no event shall the
amount of any rebates exceed the amount appropriated and
available in the City' s Affordable Housing Trust Fund (which
is a designated reserve within the general fund) .
VII. COMPLIANCE MONITORING - RENTAL PROJECTS
A. Record-keeping and Record Retention Provisions.
(1) The owner of an affordable housing rental project
is required to keep and have available for City
review copies of records for each qualified rent
restricted unit in the project showing:
a. The number of units which received impact fee
rebate;
b. The gross rent charged on each rent restricted
unit in the project (See IV(D2) for a
definition of gross rent) ;
C. the number of occupants in each rent
restricted unit;
d. The rent restricted unit vacancies in the
project and information that shows when, and
to whom, the units were rented;
e. The annual income certification of each low-
income tenant per rent restricted unit;
f. Documentation to support each low-income
tenant's income certification;
g. The character and use of the nonresidential
portion of the buildings and overall project
(e.g. tenant facilities that are available on
a comparable basis to all tenants and for
which no separate fee is charged for use of
the facilities, or facilities reasonably
required by the project) .
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(2) The owner is required to retain the records
described in paragraph A(1) of this section for the
duration of the 10 year compliance period.
NOTE: Items A(1) (a) and A(1) (f) are submitted as
confidential financial data and, to the extent
permitted by law, will not be a public record.
B. Certification and Review Provisions.
(1) The owner of the affordable housing rental project
is required to submit to the City an annual
certification, on each anniversary of the
date the project was placed in service, in a form
to be provided by the City, that for the preceding
12-month period:
a. The number of units which received impact fee
rebate is equal to the number of rent
restricted units occupied by income qualified
tenants.
b. The owner has received an annual income
certification from each low-income tenant and
documentation to support that certification.
C. All units in the project were for use by the
general public and used on a non-transient
basis (except for transitional housing for the
homeless) ;
d. Each building in the project was suitable for
occupancy, taking into account local health,
safety, and building codes;
e. All tenant facilities included in the project,
such as swimming pool, other recreational
facilities and parking areas, were provided on
a comparable basis without charge to all
tenants in the project;
f. If a rent restricted unit in the project
became vacant during the year, the vacant unit
must be rented to tenants having a qualifying
income;
g. If the income of tenants of a rent restricted
unit in the project increased above the limit
allowed, the next available unit of comparable
or smaller size in the project will become
rent restricted and be occupied by tenants
having a qualifying income for a rent
restricted unit. If the project is 100% rent
restricted, the project is still considered in
compliance.
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(2) The City will review the Owner certifications
submitted pursuant to paragraph B(1) of this
section for compliance with the requirements of
this program.
C. Auditing Provision. The City has the right to perform a
program audit of any project funded by the Development
Impact Fee Rebate Program during the ten (10) year low-
income compliance period. An audit includes an
inspection of any building in the project, as well as a
review of the records including but not limited to those
described in paragraph A(1) of this section.
D. Non-Compliance Provision. Failure by the applicant to
comply with the provisions outlined in Section VII of
this document will subject the applicant to recapture
provisions outlined in Section IV(D3) of this document
and will affect the future participation of the principal
of such applicant in the rebate program.
E. Multiple project compliance reporting provision. Should
a project have multiple compliance reporting
requirements, the City can accept the compliance reports
of those programs. Such determination will be made on a
case by case basis by the City Planning Department.
VIII.COMPLIANCE MONITORING - HOMEOWNERSHIP PROJECTS
A. It is assumed that the deed restriction will assure
compliance with the five (5) year low-income compliance
period. If the owner intends to sell the unit, written
notice of intent to sell must be provided to the City
Planning Department thirty (30) days prior to the closing
of such sale. Sale proceeds are subject to recapture
provisions outlined in Section IV(E3) of this document.
B. Multiple project compliance reporting provision. Should
a project have multiple compliance reporting
requirements, the City can accept the compliance reports
of those programs. Such determination will be made on a
case by case basis by the City Planning Department.
DISCLOSURES: MISREPRESENTATIONS OF ANY INFORMATION WILL BE GROUNDS
FOR IMMEDIATE REPAYMENT OF ALL DEVELOPMENT IMPACT FEE REBATE FUNDS
RECEIVED PLUS INTEREST FROM THE DATE OF THE ISSUANCE OF THE REBATE
(Prime Rate plus ten percentage points or the legal limit whichever
is less) AND MAY AFFECT FUTURE PARTICIPATION IN THE AFFORDABLE
HOUSING PROGRAMS OF THE CITY OF FORT COLLINS.
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